A government-backed review of the financial industry is expected to accuse the City of an obsession with making short-term profits.
John Kay, a professor at the London School of Economics, will warn that the culture of "short-termism" is hurting Britain's recovery.
Mr Kay is expected to criticise pay policies that focus on quick gains.
His review of equity markets and long-term decision making was commissioned by Business Secretary Vince Cable.
The report comes after this year's "shareholder spring" which saw some institutional investors challenge remuneration policies at several companies.
It was reported at the weekend that Mr Kay will recommend the scrapping of the stock market rule that requires companies to report earnings quarterly.
It is felt that this rule forces investors and companies to focus on short-term profits and meeting short-term targets.
Another likely recommendation is that company boards considering a takeover bid should be clear that it is in the long-term interests of their business before they approve a sale.
It is also expected that Mr Kay will back introducing more diversity into boardrooms by having more shareholder votes on non-executive directors.
In an interim report published in February, Mr Kay highlighted concerns from major institutional shareholders, such as pension funds, that the financial markets are policed in a way which favours investment bankers and stockbrokers.
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